For example, single apartment buildings of a given quality tend to sell at a particular price per apartment. In many of those cases, the sales comparison approach may be more applicable. On the other hand, a multiple-building apartment complex would usually be valued by the income approach, as that would follow how most buyers would value it. As another example, single-family houses are most commonly valued with the greatest weighting to the sales comparison approach. However, if a single-family dwelling is in a neighborhood where all or most of the dwellings are rental units, then some variant of the income approach may be more useful. So the choice of valuation method can change depending upon the circumstances, even if the property being valued does not change much.
The sales comparison approach is based primarily on the principle of substitution. This approach assumes a prudent (or rational) individual will pay no more for a property than it would cost to purchase a comparable substitute property. The approach recognizes that a typical buyer will compare asking prices and seek to purchase the property that meets his or her wants and needs for the lowest cost. In developing the sales comparison approach, the appraiser attempts to interpret and measure the actions of parties involved in the marketplace, including buyers, sellers, and investors.
Incumbent Property Appraiser Pam Dubov is retiring after eight years in office. Elected in the wake of a scandal, she has provided steady leadership and sound service to the public. The office faces new challenges with her departure, including more impending retirements of senior staffers with institutional memory. The office also needs to upgrade both the software it uses to appraise Pinellas properties and the website that serves as the public portal.
Although appraisers and assessors of real estate work in offices, they may spend a large part of their time conducting site visits to assess properties. Time spent away from the office depends on the specialty. For example, residential appraisers tend to spend less time on office work than commercial appraisers, who might spend up to several weeks analyzing information and writing reports on one property. Appraisers who work for banks and mortgage companies generally spend most of their time inside the office, making site visits only when necessary.
While no appraiser is infallible, his or her opinion of the value of your home is informed by rigorous training, numerous tests, several years of on-the-job experience and required continuing education. They are also required to substantiate every finding in their reports that could influence a home’s value. Appraisers and their employers (often appraisal management companies) are heavily regulated. Consequences of issuing deliberately misleading or biased reports can be severe, so appraisers work hard to remain impartial and keep personal value judgments and prejudices out of their work.
The National Association of Appraisers (NAA) was formed with a purpose of uniting those engaged in the appraisal profession for the purpose of exerting a beneficial influence upon the profession and to advocate appraiser interests. The NAA has established an advisory group consisting of leadership at the state organizations and coalitions called the Board of Governors where those states can help guide the NAA in acting in the best interest of all appraisers. The NAA also has a designated membership, MNAA (Member of the National Association of Appraisers, who is an individual who holds an appraisal license, certification or similar appraisal credential issued by a governmental agency; and who accepts the membership requirements and objectives of the National Association of Appraisers.
The Federal German Organisation of Appointed and Sworn Experts (Bundesverband Deutscher Sachverständiger und Fachgutachter, abbr. BDSF) is the main professional organization encompassing the majority of licensed appraisers in Germany. In recent years, with the move towards a more global outlook in the valuation profession, the RICS has gained a foothold in Germany, somewhat at the expense of the BDSF. Another German Organisation of Appointed and Sworn Experts is the (Deutsche Sachverständigen Gesellschaft, abbr. DESAG) This organization also includes a large number of licensed appraisers in Germany.
Leasehold value – The interest held by a tenant. If the tenant pays market rent, then the leasehold has no market value. However, if the tenant pays less than the market, the difference between the present value of what is paid and the present value of market rents would be a positive leasehold value. For example, a major chain retailer may be able to negotiate a below-market lease to serve as the anchor tenant for a shopping center. This leasehold value may be transferable to another anchor tenant, and if so the retail tenant has a positive interest in the real estate.
Alternatively, multiple years of net operating income can be valued by a discounted cash flow analysis (DCF) model. The DCF model is widely used to value larger and more expensive income-producing properties, such as large office towers or major shopping centres. This technique applies market-supported yields (or discount rates) to projected future cash flows (such as annual income figures and typically a lump reversion from the eventual sale of the property) to arrive at a present value indication.
John responded quickly to my initial inquiry and clearly explained the cost, process and what would be covered in the scope of work. We scheduled a time to meet at the property, and he provided the completed appraisal report the following day. He was professional, well versed in current market conditions, and his report was thorough and well documented. From start to finish, the entire process moved swiftly and smoothly with excellent communication via phone, email and in person. I would use this provider again.
Besides the mandatory educational grade, which can vary from Finance to Construction Technology, most, but not all, countries require appraisers to have the license for the practice. Usually, the real estate appraiser has the opportunity to reach 3 levels of certification: Appraisal Trainee, Licensed Appraiser and Certified Appraiser. The second and third levels of license require no less than 2000 experience hours in 12 months and 2500 experience hours in no less than 24 months respectively. Appraisers are often known as "property valuers" or "land valuers"; in British English they are "valuation surveyors". If the appraiser's opinion is based on market value, then it must also be based on the highest and best use of the real property. In the United States, mortgage valuations of improved residential properties are generally reported on a standardized form like the Uniform Residential Appraisal Report. Appraisals of more commercial properties (e.g., income-producing, raw land) are often reported in narrative format and completed by a Certified General Appraiser.
You may ask when is an appraisal service needed? Appraisals are generally required whenever real property is sold, mortgaged, taxed, insured, or developed. In most countries, appraisers are required to be licensed and certified to properly value property and land. So if you are looking to purchase a home in the near future you will notice that your bank will order an appraisal to value the property to make sure that it's worth the value that you are borrowing from them.
"Blockchain will transform the real estate industry. There's no doubt about it, and the earlier entities get on board, the more they stand to gain in terms of security and efficiency," said Tony Franco, CEO of SafeChain. "Starting with something as relatively straightforward as property transfers, blockchain creates a decentralized, near-perfect audit trail that can never be lost or stolen. Eliminating that risk opens the door to completely changing how properties are bought and sold in the U.S., and those changes will ultimately be to the consumer's benefit, as well as the real estate industry's as well."
The report must include a street map showing the appraised property and comparable sales used; an exterior building sketch; an explanation of how the square footage was calculated; photographs of the home's front, back and street scene; front exterior photographs of each comparable property used; and any other information, such as market sales data, public land records and public tax records, that the appraiser uses to determine the property's fair market value. An appraisal costs several hundred dollars, and generally, the borrower pays this fee.
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In person: When requesting public records in person, you can stop by Pinellas County Marketing & Communications, located at, 333 Chestnut St., Clearwater, FL 33756. (727) 464-4600. Also, you may make a Public Record Request at any Pinellas County Department, click on the link for department information. http://www.pinellascounty.org/departments.htm. When you arrive, provide your public records request. To help us expedite and avoid delays in processing your request, please be as detailed as possible with the information you are requesting. The request will be reviewed and forwarded to the department liaison responsible for processing your request. You will be notified through your preferred communication method of updates relating to your request.